The Death of Real Estate?

The Death of Real Estate?

With all the talk of the death of real estate as an investment, I thought it would be helpful to compare our local market with the Standard & Poors 500’s performance over the last decade. The S&P 500 is a weighted index based on the stock prices of 500 large, publicly held U.S. companies. If on New Year’s Day 2000 an individual bought a $100,000 home in Knoxville, and invested the same amount in a fund based on the S&P 500 index, the present day value of the home (if properly maintained) would be $141,810, and the present day value of the fund would be $70,028. A decade later not only is your home worth twice as much as the fund, but you have enjoyed a place to live and have received the tax benefit of the interest deduction if you carry a mortgage on the home.
* Statistics from Knoxville Assoc. of Realtors Median prices for 3 bedroom homes and www.standardandpoors.com

Reprinted from Knoxville News Sentinel, Home Market Now, Oct. 25, 2009

Video Library of East Tennessee

For a great Video Library of all things East Tennessee, check out this great site:
http://www.viewsandvisits.com/

Great Basement Rancher in Holston Hills

Take a look at the Virtual Tour for my new listing in the Holston Hills Subdivision.

The Devil's in the Details

If we keep our eyes open we can learn a lot from people we work with. This article I wrote for the Real Estate Section for our local newspaper is one such story:
http://www.knoxnews.com/news/2008/oct/27/devils-details/

Funny Stories In a Day's Work

Check out this article about an event that happened to me. It's entitled "What Not to Wear":
http://www.realtor.org/archives/trenches200603

Home Inspection Issues to Look Out for.

Many thanks to an excellent Home Inspector, Peter Waraksa, for agreeing to this "On Site" discussion of some items to look out for when you are having Home Inspection.

1. Grading: Ideally you should not have more than a six inch rise within ten feet of the home's outer wall. Water flowing into the home can cause significant problems. Make sure to get a good look in the crawl space to make sure there is no standing water or moisture problems.
2. Foundation: Small cracks in the wall are not a concern. However, any separation over 3/4" should be checked out by a structural engineer. Make sure the foundation vents are above ground or are protected by a well, to prevent water flow into the crawl space.
3. Soft or Rotten Wood: Usually siding or trim pieces that are not properly caulked allowing moisture in.
4. Roof: Look for loose ridge vents, missing or damaged shingles, and loose flashing around plumbing vents. Each of these lead to roof leaks and water spots on interior ceilings.
5. Electrical Outlets: Make sure the outlets are 3 prong instead of 2 prong which are common in older homes. Two prong outlets do not provide a ground and are not recommended for use with computers and other electronic devices. Insure that outlets are GFIC (Ground Fault Interrupted Circuit) around areas exposed to water. When an item plugged in to a GFIC is exposed to moisture, the power will immediately shut off to avoid electrical shock.
6. Damaged Window Seals: In a double pane window if the seal is breached, there will be moisture build up between the windows and give you a "foggy" effect when looking through the glass.

If you would like to contact Peter Waraksa to schedule a home inspection he can be reached at 865-694-6332.

Appraisals No Longer a "Slam Dunk"

In the "Old Days" we as Realtors never were too concerned about a sale falling through because of it not appraising for the purchase price. Times are different now with increase emphasis being place on the Appraisal. Click on this link for an interesting article I've written about Appraisals.
http://www.knoxnews.com/news/2008/mar/09/what-you-need-do-appraiser-arrives/